In this post I will revaluate Cinco Minas/Gran Cab
Post# of 9903
Posted On: 07/01/2016 5:22:59 PM
In this post I will revaluate Cinco Minas/Gran Cabrera again according to the press release from SRGE on December 26th 2012 with the new date July 1st 2016. http://www.prnewswire.com/news-releases/south...06901.html
SRGE valued Cinco Minas/Gran Cabrera between $550-$600 million in this press release. I will calculate how much Cinco Minas/Gran Cabrera is worth now (July 1st 2016) compared to then (December 26th 2012) according to SRGE's press release. And remember, this price would be just for the Cinco Minas/Gran Cabrera mines, not the other mines El Horconcito etc. which we all own as SRGE/MSJ shareholders.
I posted a revaluation post like this on April 29th on post 7940. In this current post there are positive changes to the price of gold and silver since April 28th:
Price of gold April 28th 2016: $1266,40
Price of silver April 28th 2016: $17,53
Price of gold July 1st 2016: $1342,71
Price of silver July 1st 2016: $19,75
Changes April 28th-July 1st: gold went up $76,31 and silver went up $2,22. With these changes we can start calculating again.
First, the original valuation of Cinco Minas/Gran Cabrera according to the press release http://www.prnewswire.com/news-releases/south...06901.html
This is the baseline of the valuation and has not changed:
Price of gold December 26th 2012: $1657,70
Price of silver December 26th 2012: $30,01
Cinco Minas December 26th 2012:
Estimated gold: 112.187 x 5(assumed with 100% ore tested) x $1657,70 = $929,861,950
Estimated silver: 14.319.064 x 5(assumed with 100% ore tested) X $30,01 = $2,148,575,553
Total worth Cinco Minas: $3,078,437,503
Gran Cabrera December 26th 2012:
Estimated gold: 212.223 x $1657,70 = $351,802,067
Estimated silver: 106,363,224 x $30,01 = $3,191,960,352
Total worth Gran Cabrera: $3,543,762,419
Total worth Cinco Minas + Gran Cabrera = $6,622,199,922
Value Cinco Minas + Gran Cabrera SRGE press release: $550,000,000
Total worth Cinco Minas:Value Cinco Minas/Gran Cabrera SRGE press release = 12.04 : 1
The divide number is 12.04.
Now we calculate Cinco Minas/Gran Cabrera according to date July 1st 2016:
Cinco Minas July 1st 2016:
Estimated gold: 112.187 x 5(assumed with 100% ore tested) x $1342,71 = $753,173,034
Estimated silver:14.319.064 x 5(assumed with 100% ore tested) X $19,75 = $1,414,007,570
Total worth Cinco Minas: $2,167,180,604
Gran Cabrera July 1st 2016:
Estimated gold: 212.223 x $1342,71 = $284,953,944
Estimated silver:106.363.224 x $19,75 = $2,100,673,674
Total worth Gran Cabrera: $2,385,627,618
Total worth Cinco Minas + Gran Cabrera July 1st 2016 = $4,552,808,222
Total worth Cinco Minas + Gran Cabrera April 28th 2016 = $4,098,740,568
The Cinco Minas/Gran Cabrera mines increased in value from April 28th to July 1st in only two months with $4,552,808,222 - $4,098,740,568 = $454,067,654!
If we use the same divide number 12.04 we get a price value just like SRGE stated in their press release on December 26th 2012 for Cinco Minas + Gran Cabrera as of July 1st 2016:
$4,552,808,222 / 12.04 = $378,140,218
I will use the worst case scenario of 1.5 billion outstanding SRGE shares in this example to calculate the SRGE share price. The SRGE share price would be $378,140,218 / 1,500,000,000 shares = $0,252. This is an increase of 2.2 cents since April 28th! So, even with a worst case scenario of 1.5 billion outstanding SRGE shares and a sale of Cinco Minas/Gran Cabrera mines on July 1st 2016 to a senior miner, I still get a SRGE share price above 20 cents nd it's still multiple pennies. And of course, as gold and silver go up in price, the price of Cinco Minas/Gran Cabrera and the SRGE share price will go up as well. The longer the senior miners wait to buy Cinco Minas/Gran Cabrera, the more they will pay for Cinco Minas/Gran Cabrera as gold/silver is recovering and going back up. By now, the senior miners must be aware that the most advanced exploration mining project in Mexico held by exploration company SRGE and now MSJ is up for sale/jv.
SRGE valued Cinco Minas/Gran Cabrera between $550-$600 million in this press release. I will calculate how much Cinco Minas/Gran Cabrera is worth now (July 1st 2016) compared to then (December 26th 2012) according to SRGE's press release. And remember, this price would be just for the Cinco Minas/Gran Cabrera mines, not the other mines El Horconcito etc. which we all own as SRGE/MSJ shareholders.
I posted a revaluation post like this on April 29th on post 7940. In this current post there are positive changes to the price of gold and silver since April 28th:
Price of gold April 28th 2016: $1266,40
Price of silver April 28th 2016: $17,53
Price of gold July 1st 2016: $1342,71
Price of silver July 1st 2016: $19,75
Changes April 28th-July 1st: gold went up $76,31 and silver went up $2,22. With these changes we can start calculating again.
First, the original valuation of Cinco Minas/Gran Cabrera according to the press release http://www.prnewswire.com/news-releases/south...06901.html
This is the baseline of the valuation and has not changed:
Price of gold December 26th 2012: $1657,70
Price of silver December 26th 2012: $30,01
Cinco Minas December 26th 2012:
Estimated gold: 112.187 x 5(assumed with 100% ore tested) x $1657,70 = $929,861,950
Estimated silver: 14.319.064 x 5(assumed with 100% ore tested) X $30,01 = $2,148,575,553
Total worth Cinco Minas: $3,078,437,503
Gran Cabrera December 26th 2012:
Estimated gold: 212.223 x $1657,70 = $351,802,067
Estimated silver: 106,363,224 x $30,01 = $3,191,960,352
Total worth Gran Cabrera: $3,543,762,419
Total worth Cinco Minas + Gran Cabrera = $6,622,199,922
Value Cinco Minas + Gran Cabrera SRGE press release: $550,000,000
Total worth Cinco Minas:Value Cinco Minas/Gran Cabrera SRGE press release = 12.04 : 1
The divide number is 12.04.
Now we calculate Cinco Minas/Gran Cabrera according to date July 1st 2016:
Cinco Minas July 1st 2016:
Estimated gold: 112.187 x 5(assumed with 100% ore tested) x $1342,71 = $753,173,034
Estimated silver:14.319.064 x 5(assumed with 100% ore tested) X $19,75 = $1,414,007,570
Total worth Cinco Minas: $2,167,180,604
Gran Cabrera July 1st 2016:
Estimated gold: 212.223 x $1342,71 = $284,953,944
Estimated silver:106.363.224 x $19,75 = $2,100,673,674
Total worth Gran Cabrera: $2,385,627,618
Total worth Cinco Minas + Gran Cabrera July 1st 2016 = $4,552,808,222
Total worth Cinco Minas + Gran Cabrera April 28th 2016 = $4,098,740,568
The Cinco Minas/Gran Cabrera mines increased in value from April 28th to July 1st in only two months with $4,552,808,222 - $4,098,740,568 = $454,067,654!
If we use the same divide number 12.04 we get a price value just like SRGE stated in their press release on December 26th 2012 for Cinco Minas + Gran Cabrera as of July 1st 2016:
$4,552,808,222 / 12.04 = $378,140,218
I will use the worst case scenario of 1.5 billion outstanding SRGE shares in this example to calculate the SRGE share price. The SRGE share price would be $378,140,218 / 1,500,000,000 shares = $0,252. This is an increase of 2.2 cents since April 28th! So, even with a worst case scenario of 1.5 billion outstanding SRGE shares and a sale of Cinco Minas/Gran Cabrera mines on July 1st 2016 to a senior miner, I still get a SRGE share price above 20 cents nd it's still multiple pennies. And of course, as gold and silver go up in price, the price of Cinco Minas/Gran Cabrera and the SRGE share price will go up as well. The longer the senior miners wait to buy Cinco Minas/Gran Cabrera, the more they will pay for Cinco Minas/Gran Cabrera as gold/silver is recovering and going back up. By now, the senior miners must be aware that the most advanced exploration mining project in Mexico held by exploration company SRGE and now MSJ is up for sale/jv.
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